Poodle Corporation was organized on January 3, 2009. The firm was authorized to issue 100,000 shares of $5 par common stock. During 2009, Poodle had the following transactions relating to shareholders' equity: Issued 30,000 shares of common stock at $7 per share.
Issued 20,000 shares of common stock at $8 per share.
Reported a net income of $100,000.
Paid dividends of $50,000.
What is total Paid-in capital at the end of 2009?

Question

Quizplus · Accepted Answer

The total paid-in capital at the end of 2009 is calculated by adding the amounts received from the issuance of common stock, which is ($30,000 x $7) + ($20,000 x $8) = $370,000. Since net income and dividends paid do not affect the paid-in capital, they are not included in the calculation. Therefore, the correct answer is B) $370,000.

Poodle Corporation Was Organized on January 3, 2009